Can I convert my regular IRA to a ROTH IRA before Apr 17, 2007 and have
this conversion be for tax year 2006?????????
Understand conversion will create taxable income but would like such taxable income
to be 2006 and not 2007.
Full Version: IRA Conversions to Roth for 2006
NO , emdemd . Roth conversion deadline is end of tax calendar year , which for 2006 was December 31st , 2006 . You're a day late and a dollar short . 
. You still have a few months yet for a 2006 " contributory " Roth contribution with your April tax return .
Your Roth conversion deadline for 2007 tax year is December 31st , 2007 . And , by the way , you absolutely can do that conversion this January / February for 2007 and have that brand new Roth earn you taxfree income going forward starting right now if you get your transaction done ASAP . I did two Roth conversions last January and just put in my last 1099 into my TurboTax just this morning for my 2006 return .
. You still have a few months yet for a 2006 " contributory " Roth contribution with your April tax return .Your Roth conversion deadline for 2007 tax year is December 31st , 2007 . And , by the way , you absolutely can do that conversion this January / February for 2007 and have that brand new Roth earn you taxfree income going forward starting right now if you get your transaction done ASAP . I did two Roth conversions last January and just put in my last 1099 into my TurboTax just this morning for my 2006 return .
Allan is correct.
You often will fail to get a conversion done if you wait to the last couple of weeks in December as custodians get backlogged. If you want a conversion done in 2007, start before Thanksgiving.
Once you submitt the letter of instructions, you need to monitor your account to make sure the process is completed. Custodians do make mistakes, and you have an obligation to read your statements and try to correct any mistakes before the deadline.
You often will fail to get a conversion done if you wait to the last couple of weeks in December as custodians get backlogged. If you want a conversion done in 2007, start before Thanksgiving.
Once you submitt the letter of instructions, you need to monitor your account to make sure the process is completed. Custodians do make mistakes, and you have an obligation to read your statements and try to correct any mistakes before the deadline.
Usually , emdemd , I do my Roth conversions in the fall of every calendar year in the September / October time frame for the reasons John explained about custodians sometimes dropping the ball . Once it took Schwab over six weeks to transact my Roth conversion . ? 
?
This last tax year of 2006 , I did my conversion in January , but I will do my conversion for 2007 later this fall again once I'm more sure how my other income , personally owned real estate sales , will fare . Don't want to go over the income limit for conversions .
Starting in 2008 , we're supposed to be able to do Roth conversions straight from 401(k)s and I'm really looking forward to that rule regulation change . Don't worry about missing 2006 . You can be early for this tax year of 2007 and enjoy more taxfree earnings forever .
? This last tax year of 2006 , I did my conversion in January , but I will do my conversion for 2007 later this fall again once I'm more sure how my other income , personally owned real estate sales , will fare . Don't want to go over the income limit for conversions .
Starting in 2008 , we're supposed to be able to do Roth conversions straight from 401(k)s and I'm really looking forward to that rule regulation change . Don't worry about missing 2006 . You can be early for this tax year of 2007 and enjoy more taxfree earnings forever .
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